For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has The AZEK Company (AZEK) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
The AZEK Company is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. The AZEK Company is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AZEK's full-year earnings has moved 2.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AZEK has returned 8.5% so far this year. At the same time, Construction stocks have gained an average of 1.5%. This means that The AZEK Company is outperforming the sector as a whole this year.
Another stock in the Construction sector, Masco (MAS), has outperformed the sector so far this year. The stock's year-to-date return is 7.2%.
In Masco's case, the consensus EPS estimate for the current year increased 0.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, The AZEK Company belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 6 individual companies and currently sits at #29 in the Zacks Industry Rank. Stocks in this group have lost about 2.7% so far this year, so AZEK is performing better this group in terms of year-to-date returns.
Masco, however, belongs to the Building Products - Miscellaneous industry. Currently, this 27-stock industry is ranked #85. The industry has moved +5.6% so far this year.
The AZEK Company and Masco could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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